Ukraine has adopted Law No. 4856-IX “On Amendments to Certain Laws of Ukraine Regarding the Expansion of the Competence of International Arbitration” dated 28 April 2026, which introduces important changes to the legal framework for international arbitration in Ukraine.

The new law broadens the categories of disputes that may be referred to international commercial arbitration, strengthens the institutional role of Ukrainian arbitral institutions, and opens the door for certain investment-related disputes involving the State, state bodies or intergovernmental organisations to be resolved through arbitration.

For foreign counsel, investors, financial institutions and companies doing business with Ukrainian counterparties, the law is relevant not only as a procedural reform, but also as a signal of Ukraine’s intention to develop a more arbitration-friendly environment for cross-border commercial and investment disputes.

Broader Scope of International Arbitration

One of the key changes is the expansion of the criteria under which a dispute may be considered suitable for international commercial arbitration.

The law confirms that disputes may be referred to international arbitration where at least one party has its place of business outside Ukraine. However, it also introduces broader connecting factors. A dispute may now fall within the competence of international arbitration where the parties have expressly agreed that the subject matter of the arbitration agreement is connected with more than one state, or where certain relevant places are located outside the state in which the parties have their places of business.

These places may include the seat of arbitration, the place of performance of a substantial part of the obligations, or the place most closely connected with the subject matter of the dispute.

This approach brings Ukrainian arbitration law closer to internationally recognised standards and may be particularly relevant for transactions involving international trade, logistics, finance, infrastructure, shipping, energy, commodities and cross-border services.

Investment Disputes Involving the State

A significant development is the express recognition that international commercial arbitration may also cover disputes involving an investor, another participant in investment activity, the State, state bodies or institutions, or an intergovernmental organisation.

Such disputes must be connected with investment activity in Ukraine or another state and may be referred to arbitration on the basis of an international treaty, Ukrainian law, another legal act, or an arbitration agreement contained in a contract or other document.

This does not mean that Ukraine has automatically consented to arbitration in all investor-state disputes. Consent to arbitration will still need to be established in each particular case. However, the amendment creates a clearer legal basis for including Ukrainian arbitral institutions, including the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry, as a possible forum for certain investment-related disputes.

The law also suggests the Cabinet of Ministers of Ukraine, when preparing or revising bilateral investment treaties and free trade agreements containing investment protection provisions, to consider including the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry as one of the possible forums for investor-state dispute resolution.

Financial and Bond-Related Disputes

The law also introduces a specific rule for certain bond-related disputes.

Disputes between a bond issue administrator acting in the interests of bondholders and the issuer of bonds, or persons providing security for such bonds, may be referred to international arbitration if at least one party is an enterprise with foreign investment.

This amendment may be relevant for structured finance, capital markets transactions, secured debt instruments and investment projects involving foreign capital.

For investors and creditors, it may offer an additional dispute resolution option in transactions involving Ukrainian issuers or security providers.

Greater Procedural Autonomy for Arbitral Institutions

The law also modernises the rules on the appointment, challenge and termination of the mandate of arbitrators.

For ad hoc arbitration, certain default functions remain with the President of the Ukrainian Chamber of Commerce and Industry. However, for permanent arbitral institutions, these functions may now be performed by the body designated in the rules of the relevant arbitral institution.

This gives arbitral institutions greater procedural autonomy and reduces the scope for court interference at the early stages of arbitration. Decisions on the appointment or challenge of arbitrators are not subject to appeal, which should help prevent procedural delays.

At the same time, parties should pay close attention to the rules of the arbitral institution they choose. The quality, neutrality and transparency of the appointment and challenge procedures will remain important factors in assessing the reliability of the arbitral process.

Application to Existing Arbitration Agreements

Another important provision is that the amendments expanding the competence of international arbitration also apply to arbitration agreements concluded before the law entered into force (i.e. before 21 May 2026).

This may have practical consequences for existing contracts. Arbitration clauses that previously raised questions regarding the scope of arbitrability may now need to be reassessed in light of the broader statutory framework.

For companies involved in existing cross-border contracts with Ukrainian counterparties, this is a good reason to review dispute resolution clauses and consider whether the new law affects potential jurisdictional arguments.

Support for National Arbitral Institutions

The law also encourages the use of Ukrainian permanent arbitral institutions in foreign economic contracts involving state-controlled enterprises and in public-private partnership projects.

The policy objective is clear: Ukraine seeks to strengthen its domestic arbitral infrastructure and reduce the costs of dispute resolution for Ukrainian state-related entities.

For foreign investors and commercial partners, this may become a recurring issue in contract negotiations with Ukrainian state-owned companies, public authorities or PPP project entities. While Ukrainian arbitral institutions may offer cost and efficiency advantages, parties should carefully assess whether the proposed forum is appropriate for the nature, value and sensitivity of the transaction.

Practical Implications for Foreign Counsel and Clients

The reform may be relevant in several practical situations.

Foreign lawyers advising clients on transactions with Ukrainian counterparties should revisit standard arbitration clauses and consider whether Ukrainian arbitral institutions may now be proposed, accepted or negotiated as a forum.

Investors entering into projects in Ukraine should pay closer attention to dispute resolution mechanisms in investment contracts, PPP arrangements, concession agreements, financing documents and state-related commercial contracts.

Creditors and financial institutions should consider the potential use of arbitration in bond-related and secured finance disputes where foreign investment is involved.

Ukrainian businesses working internationally may also benefit from a more flexible arbitration framework, especially where the transaction has a genuine connection with more than one jurisdiction.

Conclusion

Law No. 4856-IX is an important step in the development of Ukraine’s arbitration framework. It expands the scope of disputes that may be referred to international arbitration, introduces a clearer basis for certain investment-related disputes, strengthens the role of Ukrainian arbitral institutions and gives parties greater flexibility in structuring dispute resolution mechanisms.

At the same time, the practical effect of the reform will depend on how arbitration clauses are drafted, whether valid consent to arbitration exists, how arbitral institutions administer proceedings, and how Ukrainian courts support arbitration in practice.

For foreign investors, international counsel and businesses involved in Ukraine-related transactions, the new law is a reason to review existing and future dispute resolution clauses and to assess whether international arbitration in Ukraine may be a suitable option for their disputes.